Franklin Templeton, a US-based asset manager, entered the race to win approval for the first US exchange-traded fund (ETF) to invest directly in Bitcoin.。Franklin Templeton recently filed with the U.S. Securities and Exchange Commission (SEC) to join other asset managers such as Fidelity and BlackRock。

If approved by the SEC, Franklin Templeton intends to rely on Coinbase Global as the custodian of the ETF's bitcoin holdings, while Bank of New York (Mellon) will handle the cash portion of the fund.。

ETF Promotes Bitcoin Growth

The rise in bitcoin prices throughout the year has been driven in part by growing optimism that the biggest asset managers, including BlackRock and now Franklin Templeton, have shown interest in spot bitcoin ETFs.。The interest has raised hopes that the SEC will be more inclined to approve such funds, despite having previously rejected such applications.。

Proponents of spot bitcoin ETFs believe their launch will open up the digital currency to a wider range of investors, potentially driving bitcoin's value up.。However, the SEC has raised concerns about potential fraud and market manipulation in the past when rejecting similar applications.。

In August, when Grayscale Investments defeated the SEC, the approval path for the spot Bitcoin ETF reportedly took a major turn.。Federal appeals court overturns SEC's rejection of Grayscale's application to turn its Bitcoin trust into a spot Bitcoin ETF。The court dismissed the SEC's objections as arbitrary and capricious, citing the lack of a clear explanation.。

Franklin Templeton has made significant progress in the blockchain and cryptocurrency space。In 2021, the company launched a money market fund that uses blockchain technology to record equity.。Franklin Onchain U.S. government money fund currently valued at 2.$9.5 billion。

Turn to Ethereum ETF

About a week ago, the Chicago Board Options Exchange (CBOE) filed two applications with the SEC expecting approval to create the VanEck Ethereum ETF and the ARK 21Shares Ethereum ETF.。If the application is approved, the ETFs will be listed on CBOE's BZX exchange.。

US Securities and Exchange Commission again delays ruling on spot Bitcoin ETF before moving to Ethereum。SEC delays decision on applications from Invesco, WisdomTree and Valkyrie until mid-October。

Meanwhile, London-based Jacobi Asset Management launched Europe's first spot Bitcoin ETF on Euronext Amsterdam last month.。Although approved in 2021, the launch has been delayed due to the changing digital asset landscape。